Olaine, 2016-11-30 17:45 CET (GLOBE NEWSWIRE) -- This third quarter was also the best third quarter in corporate history, as the sales reached 25.2 million euros, whish represents an increase by 15% compared to the third quarter of 2015. The net profit of the third quarter was 1.66 million euros, which is by 41% less than during the third quarter of 2015. The profit was adversely influenced by provisions of 2.2 million euros for Ukrainian and Russian receivables and for potential value impairment of investments in Belarussian company NPK Biotest.
„Success of Olainfarm in the near future will to a large extent depend on how well will we diversify our sales markets and products and how good we will be at maintaining our existing positions. Therefore we continue with registration of products in existing and new markets and acquire pharma related companies, which help us expand our exports geographically. Within the next two years we will have to integrate acquired companies into our group, in order to use all opportunities provided by joint administrative, marketing and logistics structure,” says Salvis Lapins, Member of Olainfarm’s Board.
During the first nine months of 2016, sales to most of Company’s key markets continued growing, except Russia, where they fell by 7% compared to nine months of 2015, and The Netherlands, when they fell by as much as 67% during the same period. It should be noted, however, that partially shipments previously made to WHO in The Netherlands this year were shipped directly to Ukraine, thus increasing Ukrainian sales. The biggest sales increases were achieved in Uzbekistan (+72%), Turkmenistan and Ukraine (+38% each) and the UK (+24%). In total in nine months, products of AS Olainfarm were sold to 39 countries in four continents.
During the nine months period, registration processes continued in Turkey, Armenia, Russia, Kazakhstan, Lithuania, Moldova, Bosnia and Herzegovina, Myanmar, Cameroon and Vietnam. Registration of several products has been successfully completed in Estonia, Kyrgyzstan, Azerbaijan, Turkmenistan, Bosnia and Herzegovina. During the third quarter registration of tree food supplements have been completed in Lithuania.
Annual meeting of shareholders of A/s “Olainfarm” convened on June 7, 2016 approved operating plan of the Group for 2016. According to it, sales of the Group in 2016 are planned to be 100 million euros, but the net profit will reach 10 million euros. According to unaudited report for 9 months of 2016, during this period 79% of annual sales target and 78% of annual profit target is met.
| Condensed Consolidated Statement of Financial Position | Group | ||
| 30.09.2016 | 31.12.2015 | ||
| EUR '000 | EUR '000 | ||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | 28 390 | 20 591 | |
| Property, plant and equipment | 38 897 | 35 579 | |
| Financial assets | 7 122 | 4 917 | |
| TOTAL NON-CURRENT ASSETS | 74 409 | 61 087 | |
| CURRENT ASSETS | |||
| Inventories | 22 989 | 20 990 | |
| Receivables | 32 441 | 30 480 | |
| Cash | 7 794 | 5 574 | |
| TOTAL CURRENT ASSETS | 63 224 | 57 044 | |
| TOTAL ASSETS | 137 633 | 118 131 | |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Share capital | 19 719 | 19 719 | |
| Share premium | 2 504 | 2 504 | |
| Reserves | 322 | 322 | |
| Retained earnings | 70 988 | 65 773 | |
| Non-controlling interests | 39 | 30 | |
| TOTAL EQUITY | 93 572 | 88 348 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 18 201 | 8 560 | |
| Deferred corporate income tax | 2 303 | 1 947 | |
| Deferred income | 2 927 | 2 656 | |
| Total Non-Current Liabilities | 23 431 | 13 163 | |
| Current liabilities | |||
| Borrowings | 7 979 | 4 258 | |
| Trade payables and other liabilities | 12 176 | 11 562 | |
| Deferred income | 475 | 800 | |
| Total Current Liabilities | 20 630 | 16 620 | |
| TOTAL LIABILITIES | 44 061 | 29 783 | |
| TOTAL EQUITY AND LIABILITIES | 137 633 | 118 131 | |
| Consolidated statement of comprehensive income | Group | Group | ||
| Q3 2016 | Q3 2015 | 9M 2016 | 9M 2015 | |
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | |
| Net revenue | 25 158 | 21 792 | 78 675 | 71 861 |
| Cost of goods sold | (9 685) | (7 346) | (30 005) | (23 588) |
| Gross Profit | 15 473 | 14 446 | 48 670 | 48 273 |
| Selling expense | (6 716) | (6 638) | (21 340) | (20 081) |
| Administrative expense | (4 529) | (3 704) | (13 579) | (12 006) |
| Other operating income | 427 | 1 371 | 1 923 | 2 307 |
| Other operating expense | (2 400) | (272) | (6 651) | (3 607) |
| Share of profit of an associate | (12) | (17) | 27 | 78 |
| Income from investments in subsidiaries | - | - | - | - |
| Financial income | 55 | 69 | 1 354 | 198 |
| Financial expense | (98) | (2 226) | (207) | (208) |
| Profit Before Tax | 2 200 | 3 029 | 10 197 | 14 954 |
| Corporate income tax | (536) | (185) | (2 631) | (2 695) |
| Deferred corporate income tax | (7) | (19) | 207 | (154) |
| PROFIT FOR THE REPORTING PERIOD | 1 657 | 2 825 | 7 773 | 12 105 |
| Other comprehensive income for the reporting period | - | - | - | - |
| Total comprehensive income for the reporting period | 1 657 | 2 825 | 7 773 | 12 105 |
| Total comprehensive income attributable to: | ||||
| The equity holders of the Parent Company | 1 653 | 2 823 | 7 764 | 12 099 |
| Non-controlling interests | 4 | 2 | 9 | 6 |
| Basic and diluted earnings per share, EUR | 0.12 | 0.20 | 0.55 | 0.86 |
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company's operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 35 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Information prepared by: Salvis Lapins JSC Olainfarm Member of the Management Board Rupnicu iela 5, Olaine, Latvia, LV 2114 Phone: +371 6 7013 717 Fax: +371 6 7013 777 E-mail: Salvis.Lapins@olainfarm.lv
